Sisolak introduces steep budget cuts to state budget

In this May 7, 2020, file photo, Nevada Gov. Steve Sisolak responds to a question during a news conference in Carson City, Nev.
AP Photo/Scott Sonner

(Michael McGrady) – Nevada Gov. Steve Sisolak’s budget proposal anticipates a $1.2 billion shortfall due to the economic impacts of the ongoing COVID-19 pandemic.

The budget proposal, presented to the state legislature on Wednesday, includes $500 million in reductions to agency budgets.

The proposal includes reductions in one-time appropriations, reversions in mandatory and statutory contingency funds, compulsory furlough days for state employees, an interim hiring freeze, tax amnesty, and the accelerated proceeds of funds obtained from mineral extraction taxes.

The governor’s budget, though, doesn’t affect per pupil funding in schools across the state that is received from the Distributive School Account. Conversely, $166 million in general fund reductions for elementary and post-secondary grades are expected.

Medicaid will also see a 6 percent rate reduction which is projected to save the state $52.9 million. Sisolak’s budget will also undo some hard-fought Medicaid rate increases that were approved by the legislature in 2019.

“None of us could have predicted a pandemic of this magnitude and the global economic crisis that has followed,” Gov. Sisolak said. “The world looks incredibly different since I first approved our State’s biennial budget back in June 2019.”

Sisolak’s office said that they are additionally looking at federal funding and other forms of assistance to swell up shortfalls in the state budget that resulted from the ongoing pandemic. Once funds are received, the statement, noted the governor will restore reductions during the remainder of the current fiscal year and into the next one.

By

Michael McGrady | The Center Square